Published: 21 August 2013

At the company's 76th AGM held yesterday, Tuesday 20 August 2013, all resolutions tabled were passed without amendments.

In a brief update the Chairman, Mr. John Moxon, advised that the group's statement of comprehensive income will be positively impacted by reduced net finance costs. This is a result of the group having received a favourable interest rate on the funds held at the RBZ, which interest will be applied retrospectively.

The interest is in the region of USD 26.0m since the adoption of the multicurrency system and the deposit with the RBZ is approximately USD 40m. Nonetheless, cash flows will not be affected at least in the short-term as the Central Bank is still working on modalities for Meikles to access the funds. If Meikles manages to access the funds, this will expunge the group borrowings.

This will in turn allow the group to return back to dividend payments. Management is confident that it will be able to access the funds with RBZ as the Central Bank is a going concern and the Government of Zimbabwe is a guarantor of RBZ debts.

Mr. Mark Wood, Executive Director also advised that Meikles Centar Mining (Private) Limited is a joint venture in which Meikles Limited owns 51%, hence it is an indigenous entity. The financing of the resource projects is envisaged to be through debt, thus the entity will maintain its indigenous status.

Meikles Centar Mining is exploring opportunities in about seven minerals. There may be opportunities for Meikles Centar Mining to resuscitate some struggling gold miners.
- imara

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